Pub Group Marston’s warns 2,150 jobs affected by Covid-19 restrictions Business

Good morning and welcome to our continued coverage of the world economy, the financial markets, eurozone and companies.

More than 2,000 licensed employees facing the loss of their jobs at the Marston’s bar chain, as the Covid-19 economic crisis deepens.

In a statement to the City this morning, Marston’s blames the new restrictions on the hospitality industry, which it says have damaged consumer confidence and undermined its efforts to reopen after the shutdown.

Marston’s, which owns 1,400 UK pubs, restaurants, cocktail bars and hotels, says its sales fell by a third in the past year, but had improved over the summer … before the latest trade restrictions.

Sales fell 10% in the 13 weeks since it reopened after closing, as consumer confidence “increased steadily” during July, August and September. That’s partly thanks to the government’s Eat Out To Help Out campaign during August, and its VAT reductions on food and non-alcoholic beverage sales.

But the latest restrictions – like a 10 p.m. curfew and full table service – mean Marston’s is now cutting back, affecting more than 2,150 dismissed employees.

It tells shareholders that the latest restrictions have undermined consumer confidence and created uncertainty.

The introduction of these additional restrictions and guidance affecting pubs is hugely disappointing in light of the lack of clear evidence linking pubs to the recent increase in infection levels, and our own data suggest that pubs are effective for minimize risks. To date, employees or guests have reported very few incidences of COVID-19 infection in our pubs, supporting our view that socializing in pubs, where social distancing is imposed and hygiene standards are high, presents more risks. lower than in other unregulated environments. . Unlike many other retail setups, we were committed to collecting test and trace data from the moment we were able to open.

And that means more than 2,000 employees who have been laid off face layoff, and the government’s job retention plan ends at the end of the month.

Marston says:

Inevitably, and sadly, recent restrictions will affect jobs. Since the start of the pandemic, our goals have included protecting the health and livelihoods of our teams. The government’s support during the summer was vital and around 10,000 colleagues have returned to work so far.

However, due to the recent additional restrictions, we have reluctantly concluded that around 2,150 pub roles that are currently licensed will be affected.

In addition, we have begun a full review of overhead costs that will conclude at the end of December. These decisions are difficult but necessary due to the constraints placed on our business at this time.

These cuts highlight why economists expect the UK unemployment rate to rise this winter, having already reached a three-year high.

The latest swath of Covid-19 restrictions is weighing on financial markets again today.

European stocks fell in early trading, after France imposed tighter restrictions on eight cities and Northern Ireland announced a new mini-lockdown.

The agenda

• 1.30pm BST: Weekly US Unemployment Claims.
• 4pm BST: Weekly US Oil Inventories From EIA